New Massachusetts Law Raises Minimum Wage and Provides Paid Family and Medical Leave

Massachusetts now joins the ranks of places with a $15 per hour minimum wage. The new wage applies to non-tipped workers and will be gradually implemented reaching the $15 mark by 2023. Governor Charlie Baker has by now signed the “An Act Relative to Minimum Wage, Paid Family Medical Leave, and the Sales Tax Holiday” (H.4640), affectionately known as the “Grand Bargain.” In addition to affecting the minimum wage, Massachusetts’s Grand Bargain creates a new paid family and medical leave program.
The biggest increment will occur in 2019 when the minimum wage will increase from $11 to $12. Thereafter, it will increase each year by $0.75 increments until 2023 when it reaches $15. Tipped workers’ will also see an increase in their minimum wage. Their $3.75 will increase by $0.60 every year until 2023 when it reaches $6.75/hour. Also of note to employers is that the Grand Bargain does away with the requirement of premium pay for hours worked on Sunday.
Employer obligations are a little more complicated as they relate to the family and medical leave portions of the bill. Reflecting a nationwide trend, eligible Massachusetts employees are now entitled to take up to 12 weeks of paid family leave and 20 weeks of paid medical leave with a maximum of 26 combined weeks of paid leave in the same year. The program will be funded by employers and employees through a payroll tax.
The Act requires an employer to restore an employee returning from leave to the same or equivalent position. An employee need not be restored if his or her position would have been terminated while on leave due to layoffs or changes in operating conditions unrelated to the leave. An employee is obligated to provide at least 30 days advance notice of the need for leave or as soon as practicable for situations beyond the employee’s control.
The employee must provide at least 30 days’ advance notice to the employer of the need for leave, which must include the anticipated start date of leave, anticipated length of leave, and the expected date of return. If the employee is unable to provide 30 days’ notice due to reasons beyond the employee’s control, the Act requires notice as soon as practicable.
Leave taken under this act must run concurrently with leave provided by Massachusetts Parental Leave Law and the federal FMLA.
Employers should be diligent in making sure covered individuals comply with certain certification requirements that are detailed in the Act, depending on the reason for the leave.
As January 2021 nears, we encourage Massachusetts employers to familiarize themselves with the newly-enacted provisions and to update their family medical, sick, and paid-time-off policies.